The Role of Corporate Governance in the Growth of Nigerian Banks
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This study investigates the role of corporate governance in the growth of Nigerian
Banks. A critical review of the situation in the Nigerian corporate environment shows
that there have been several cases of abuse of trust by board of directors in some banks,
which can be reduced through corporate governance. A multiple linear regression
analysis involving ordinary least square was employed to test the hypothesis to examine
the extent which corporate governance has improved the growth of Nigeria banks. The
statistical significance of the variables was first determined using ANOVA statistics. The
findings reveal that the problems of corporate governance in the Nigerian banking
sector include: instability of board tenures, board squabbles, ownership crises, high
level of insider dealings. While the weaknesses of corporate governance have been
identified to include ineffective board oversight functions, disagreement between boards
and management giving rise to board squabbles, lack of experience on the part of the
Board of director’s members and weak internal control. It is therefore recommended
that issues bordering on poor corporate governance which come to notice should be
promptly tackled while customers should report such issues to regulatory authorities
Keywords
H Social Sciences (General)